Big raise ALERT: TCS employees set for 2–8% hike from September 1

New Delhi: Tata Consultancy Services Ltd. employees have reason to celebrate. India’s largest software services company will roll out salary increments to nearly 4.5 lakh staffers starting September 1, 2025.

According to sources, junior to mid-senior level employees in grades C1, C2, and C3A — with annual CTC ranging between ₹15 lakh and ₹35 lakh — will be eligible for the raise. Onshore employees (working outside India) will get a 2–4% hike, while offshore staff will see a bigger jump of 6–8%, in line with industry averages.

Following TCS’s ‘bell curve’ performance model, top performers stand to gain the most, with double-digit hikes on the cards.

In an email to employees, Chief Human Resources Officer Milind Lakkad and CHRO Designate K Sudeep said, “We are pleased to announce a compensation revision for all eligible associates in grades up to C3A and equivalent, covering 80% of our workforce. This will be effective September 1, 2025.”

The move to boost pay comes as TCS works on retaining talent and investing in future-ready capabilities, even as it undertakes a workforce realignment strategy, which will also see around 12,000 roles being trimmed in FY26.

TCS’s attrition rate stood at 13.8% in the June quarter — its highest in nearly two years. The company’s total headcount now stands at 6,13,069, with over 6,000 employees added net in the quarter. TCS also confirmed that it will honour all offer letters issued this year.